Tesla uses Bitcoin as an asset allocation, or brings Bitcoin into a new stage
Yesterday, Musk’s call for a single bitcoin set off a turbulent wave in the currency circle. Bitcoin rose by 20%, driving other currencies to continue to rise. The current total market value of the cryptocurrency market has exceeded 1.4 trillion US dollars, which is only the market value of Bitcoin. It came to 880 billion U.S. dollars, not far from the 1 trillion U.S. dollar mark.
It is worth noting that many people attribute the rise of Bitcoin to the fact that Tesla can pay with Bitcoin in the future, but the more attractive factors in Tesla's financial report and the more important factors that promote the rise of the currency price are this passage "We A total of $1.5 billion has been invested in Bitcoin and may acquire and hold digital assets from time to time or over time. Additionally, we hope to begin accepting Bitcoin as payment for our products in the near future, subject to applicable law.”
According to documents submitted by Tesla to the SEC, Tesla held approximately US$19.38 billion in cash and its equivalents at the end of 2020. In January 2021, Tesla invested US$1.5 billion in Bitcoin, accounting for the proportion of cash held. 7.7%.
Why is this passage important, because Tesla converted 1.5 billion US dollars of company funds into Bitcoin, that is, this part of Bitcoin is used as the company’s asset allocation, which is different from the meaning of Musk’s direct purchase. Musk can buy it himself. It is a personal preference, but a giant company like Tesla uses Bitcoin as an asset allocation, which means that it is a decision made after evaluation by the company's professional risk control agency.
So such a "top giant" company uses Bitcoin as an asset allocation, what about other companies? This is no longer a matter of financial institutions. It is currently Tesla. In the future, technology giants such as Google, FB, and Apple, as well as other non-financial institutions may use it as an asset allocation, and Tesla is undoubtedly the current leader. He opened his mouth. Besides, compared with companies like Apple, Tesla is not bad. Apple has a market value of more than 2.2 trillion U.S. dollars and is the company with the highest market value in the world. It has about 200 billion U.S. dollars in cash on hand, enough to buy 25% of all bitcoins in circulation.
Besides, how many people in the world use iPhones? If Apple Pay is paired with cryptocurrency payment, then cryptocurrency may officially become a product that we can see in our "daily life", but it is still too early to say this, but we can look forward to the development of Tesla Motors. Cryptocurrency payment is enabled in the app store.
The sharp rise in the price of the currency yesterday also verified what we said before. Now the effect of Musk’s words has gradually diminished after several times. After all, the CEO will not delay buying coins, and Musk has to announce his position to shock the market, and Tesla's financial report released yesterday obviously gave the market a surprise.
Why did the market react so strongly? A rise of $8,000 in one day is also a very dazzling record. It is no exaggeration to say that Tesla’s behavior is very likely to bring Bitcoin into a new era of development, an era not only of retail transactions and institutions hoarding coins, but also as a normal company’s asset allocation, although the company has previously operated , but compared with Tesla's influence, it is not worth mentioning. It is very likely that major companies and fund institutions will start to buy Bitcoin silently. Let us wait and see.
Going back to the market, the market continued to hit after the market opened today, showing that it stepped back around $45,500, and then rose rapidly, breaking through $48,000 at the highest point, and it seems that it is only 5% away from $50,000.
Judging from the daily line, yesterday's big positive line has basically brought the market to another level, which is mainly reflected in two aspects. One is to break through the previous high, which is the historical high. The second is to open the upward opening of the Boll channel. The most direct manifestation of the dual effect is to further open the upward channel.
In fact, it is not surprising that the market is empty at all. We adopted a relatively conservative strategy in yesterday's article, that is, to take profits from some positions, and then leave some positions to expand to high positions. But in fact, there are far more short-sellers than long-sellers in the market around $4,000, which can be seen from yesterday's liquidation data.
The amount of liquidation within 24 hours is close to 1.3 billion US dollars, and the number of people liquidated on the entire network has reached nearly 120,000, and it can be seen that if the main currency of liquidation is Bitcoin, it will exceed 1 billion US dollars. Regarding this point, we I still want to remind you that whether you are safe in your pocket or waiting for the currency to rise, you must not make orders against the trend. You will never deny that the market will have a chance to fall, but it will still explode before your position explodes. After that is the key.
There is still a chance for the currency price to go up tonight. After all, Tesla’s $1.5 billion yesterday can still drive the enthusiasm of the market. Whether it is a company or a retail investor, the company needless to say, Tesla is equivalent to tearing a hole. , but some retail investors are more worth looking forward to. After all, Tesla and Musk still have some fanatical supporters, which can be seen from Tesla's stock price.
But such a high position is still not recommended for everyone to catch up now. Today is only Tuesday, and the weekly line has already increased by close to 20%. At most, it will rise for another day or two and wait for the second half of the week to usher in a short counterattack. And for many people, chasing Bitcoin now is actually expensive and has little effect on making money. If it is a contract, the risk is too high. It is recommended to wait for a callback.
Mainstream currency: The increase of ETH was close to 8% yesterday, and the performance was not bad, but it can be clearly seen that it was driven by the rise of Bitcoin and had little to do with itself. Even so, the highest price of the currency was close to 1,800 US dollars.
In other respects, LTC has performed quite well, with an increase of 10% yesterday, breaking through $170 at its peak, while BCH once broke through $500 when it continued to rise today, which is a typical follow-up trend.
In terms of mainstream currency, let’s take a look at the situation of Bitcoin. If it maintains a high level of volatility, then the mainstream currency can focus on it. If the profit-making effect of Bitcoin is not high, some funds in the circle may flow to the mainstream that has not been fully released. currency.
Platform currency: The platform currency has performed very well in the past two days, especially BNB. The opening price last week was 44 US dollars, and the closing price so far this week has reached 97 US dollars. The price of the currency has doubled, and it is in within 10 days.
The performance of HT is also good. From the end of February to the present, the increase has exceeded 60%, and it is currently close to 10 US dollars. The factors for the increase of HT and BNB are actually similar, mainly because the public chain is doing very well. In comparison, OKex The public chain of the public chain is relatively unsatisfactory, so the performance of the currency price is relatively average.
DeFi: In the past two days, DeFi concept coins are relatively average, only a few currencies are more prominent, and the previous leading currencies such as Uni and AAVE are relatively sluggish. Today's funds may be displayed on Binance, HECO and mainstream currencies. Due to limited funds, not all currencies can rise at the same time, and there are still differences in different sectors at different times.
DOT: The lowest position of the DOT callback the day before yesterday was almost at $18.5, which means that it just stepped back on the upper track of the previous range of $14-19. After confirming that the support is valid, it rose by 16% in a single day yesterday, and it also touched $24. However, it seems that more than 10 million DOTs have been unlocked this week, so we need to be vigilant at that time.
